Apple Intelligence is set to launch on iPhones, iPads, and Macs later this summer. However, reports from Bloomberg’s Mark Gurman indicate that the tech giant may implement a monthly subscription fee for certain advanced features. While basic functionalities introduced during its reveal at WWDC 2024 will remain free, Apple is reportedly considering a program similar to "Apple Intelligence+" that would provide additional features for a monthly fee, akin to its existing iCloud subscription model.
Recently, Apple's substantial success has created some challenges. Its devices now last longer than ever, with older models capable of running the latest operating systems. For instance, iOS 11 will reportedly support Apple Intelligence upon the release of iOS 18, iPadOS 18, and macOS Sierra.
With fewer major design overhauls in recent product lines and a challenging economy, Apple faces difficulties encouraging consumers to upgrade their older devices for the newest models. To counteract this, the company is exploring new revenue sources through software subscription models. This strategy should not surprise users, as Apple previously announced plans to take a share of the subscriptions from its AI model partners, which are rumored to include Anthropic and Google, as well as players in the Chinese market. This move toward user subscriptions for premium Apple Intelligence features aligns well with Apple's current direction.
By diversifying its revenue streams and building partnerships with multiple AI providers, Apple can remain flexible and reduce its dependency on selling new $1,400 smartphones every 18 months. However, the company is still incentivizing users to upgrade to the latest hardware. As Gurman points out, even though seven-year-old Macs can run the upcoming macOS Sierra, features like Game Mode and iPhone Mirroring will require newer hardware.
Additionally, Apple has confirmed that accessing the new AI features will necessitate a Mac with an M1 processor or later. Details about the structure, offerings, and pricing of the potential subscription model have yet to be announced.